North Carolina Down Payment Assistance Systems

Payments Gateway - The North Carolina Housing Finance Agency got two amazing programs for first-time Home Buyers. These programs will be the Mortgage Credit Certificate and also the deposit Assistance System.

You also purchase a property between December 1, 2009 and January 1, 2009 and if you meet the requirements for one of these programs, you could also qualify for the $8,000 tax credit just enacted into law in the Federal Economic Stimulus Plan.

First, who's a First Time Home Buyer? A First Time Home Buyer is someone who hasn't owned a home in the past three years. It is the same qualifying definition for the $8,000 tax credit.

What is a Mortgage Credit Certificate and Who Qualifies?

A Mortgage Credit Certificate (MCC) is a federal tax credit to assist home buyers with low and moderate incomes. The MCC takes this a step further. An MCC “reduces your tax liability predicated on a share of the mortgage interest which you pay.

It is possible to claim 20% of the interest you pay on your mortgage as a credit on your own federal income taxes, in case you qualify for the MCC. It is possible to save around $2,000 on your taxes.

If you do qualify for 2009, for the MCC, you'll find a way to unite this with the $8,000 tax credit. This could reduce a purchaser's tax liability .

Who Qualifies for an MCC?

Household income means the “gross income of the mortgagor and every other individual expected to reside in the dwelling who is 18 years old or older.”

House price limits Durham and Chatham Counties and the income are given below.

MCC Income Limits 1 Man $61,500 2 Men $61,500 3 Men $70,500 4 Persons $70,500

MCC Sales Cost Limitations New Dwelling $220,000 Existing Dwelling $210,000

Who Qualifies for Down Payment Help?

Home buyers that want help with their deposit and closing prices may be able to get down payment assistance - or, quite simply, interest-free, deferred second mortgages up to $8,000. The buyer only needs to pay and the load would pay as much as .

This program has more rigorous income limits than the MCC program outlined above. Like the MCC program, it might be used together with the new $8,000 tax credit on home purchases between January 1, 2009 and December 1, 2009. The deposit assistance, however, cannot be used together with the MCC. That is an either or situation.

The income and house price limits that apply in Orange, Durham and Chatham Counties are listed below.

Down Payment Assistance Income Limits

1 Man $39,950 2 Persons $45,650 3 Individuals $51,350 4 Persons $57,050

Down Payment Assistance Sales Cost Limits New Home $210,000 Existing House $210,000